Online Advertising Market Dominance
Few companies are dominating and leveraging lucrative online advertising market which includes Google, Facebook, Amazon and Apple. The government of most countries treat it as unfair, illegal and competition crushing monopoly, Thus, they are circling their wagons. The big companies having enormous resources buy small ones and squash competition. Initially, these companies bring their services almost for free to break the business and later raise prices in the long run.
The question arises in the mind of the people that which is the hottest tech company or who has a bigger market cap than Cisco or HP, who is having more users than Twitter and which company generate more sales than Face book? The answer is Tencent situated at China has been spinning a web of telecom, mobile and online retail business and the company is counted among the largest companies in the world.
Tencent was founded 15 years ago in Shenzhen and offers variety of things ranges from online and mobile games to search, software development, e-commerce and instant messaging.
The company offers mobile messaging app known by the name of WeChat which is currently having 272 million monthly active users. It also offers desktop messaging service which is best known as the operator of QQ, which presently having 816 million monthly active users.
In the past decade, Tencent is counted as one of the best performing stocks which is increasing more than 12,200 percent listing in Hong Kong in the year 2004. The firm is having a market cap of $120 billion which is more than McDonald's, American express or Boeing.
The company is having some internet rivals such as Twitter, Google, and Face book and unlike them it does not depend on advertising revenue. Instead, the company has mined a rich seam by selling virtual products to legions of online gamers eager to upgrade their interactive experience.
The company’s co-founder and CEO wanted the expansion of the business, thus the company is entering into the new businesses such as banking and insurance and it hope that success in these areas could give a new direction or reshape the economy of the country.